Growth Capital

SG Credit Profile: Software & Technology

The Company: X1 is a market leader in remote preservation and ESI collection software. The Company’s products are utilized by F500 companies, law firms, and government agencies for legal, compliance, and governance purposes.

The Financing Situation: X1 required growth capital to continue new product development and to bolster its enterprise sales team.

The Solution: SG was supportive of the transaction given the Company’s ARR growth, strong enterprise customer retention, and continued investor support. SG structured a $2.5MM non-dilutive credit facility around the Company’s ARR, allowing existing investors to capture upside in enterprise value generated by additional growth. SG moved quickly to close the transaction within three (3) weeks.

Chicago, IL – June 7, 2022 – Stonegate Capital, a division of SG Credit Partners (“SGCP”), a family-office backed lender providing capital to lower middle market businesses and entrepreneurs, is pleased to announce the closing of a senior debt investment in Van Leeuwen Ice Cream, a leading brand of premium ice cream products in the U.S.

Founded in 2008 by brothers Ben and Pete Van Leeuwen and Laura O’Neil, Van Leeuwen began as a single ice cream truck and quickly grew into a nationally recognized brand known for its made-from-scratch dairy and vegan ice creams which are available online, in stores, and at 30+ scoop shops across the country. The company sources high quality ingredients and uses simple recipes to create the best ice cream for all.

“Innovation has been at the center of the company’s success having first ascended as a leader in ice cream, to the development of unique and wildly popular flavors, to the most recent launch of their ice cream bars,” said Dan McCallum, Director at Stonegate Capital. “Van Leeuwen’s approach to making the best products with the best ingredients was an ideal fit for our investment philosophy to support mission-driven market-leaders.”

“Stonegate Capital has been a valued partner since we started our relationship in early 2022.  They consistently show a deep understanding of the complexities and flexibility needed to assist a high-growth and innovative company in the ice cream space.  They have become an invaluable member of our extended team as we balance both our scoop shop and wholesale channels growth,” said Ben Van Leeuwen, CEO and Co-Founder of Van Leeuwen Ice Cream. 

Stonegate has significant experience investing in the emerging food and beverage space. Current and past investments include Clio Snacks, Country Archer Provisions, Purely Elizabeth, Simple Mills, Van Leeuwen, and Zevia.

About Van Leeuwen

Van Leeuwen is a leading brand of premium ice cream products in the U.S. Based in Brooklyn, NY, Van Leeuwen’s products can be found online, in stores, and at 30+ scoop shops across the country. Van Leeuwen is a mission-driven organization on a quest to make good ice cream from good ingredients that makes you feel good. For more information and to browse Van Leeuwen’s products, please visit www.vanleeuwenicecream.com.

About Stonegate Capital / SG Credit Partners

Stonegate Capital, a division of SG Credit Partners (“SGCP”), is a family-office backed lender providing capital to lower middle market businesses and entrepreneurs requiring tailored credit solutions. Stonegate and SGCP provide structured credit solutions ranging from $2 Million – $20 Million primarily via three credit verticals: Software & Technology, Consumer Products, and Lower Middle Market. The firm has collectively deployed over $500MM+ of capital to lower middle market businesses across a variety of industries. For more information, please visit www.sgcreditpartners.com.

SG Credit Profile: Software & Technology

 The Company: Rallio is a social media management SaaS platform that provides brand control and reputation management solutions to franchise businesses.  

The Financing Situation: Rallio was seeking non-dilutive growth capital for opportunistic M&A and to execute on a strong new customer pipeline.

The Solution: SG was supportive of the transaction given the Company’s ARR growth, strong retention, and scalability of the platform. SG’s efficient underwriting process developed via executing over 100 software and technology transactions enabled a closing timeframe of less than three (3) weeks. This streamlined approach allowed the Company to focus on day-to-day management and growth of the business rather than being sidetracked by heavy due diligence.

 Please visit Rallio’s website for additional information: www.rallio.com

Stonegate Capital is excited to announce it has closed on a senior debt investment in Clio Snacks. Founded in 2015 by Sergey Konchakovskiy, Clio offers a line of handheld Greek Yogurt Bars and Granola & Yogurt Parfait Bars that combine the benefits of whole milk Greek yogurt – which are high in protein and probiotics – with an irresistible cheesecake-like texture and decadent dark chocolate coating. Clio recently launched three new innovative additions to its refrigerated, handheld bar portfolio: Chocolate Greek Yogurt Bars, Vanilla Less Sugar Yogurt Bars and Vanilla Almond Granola & Yogurt Parfait Bars.

“Clio is an innovative fresh snacking brand and we are ecstatic about our partnership with the Company. We pride ourselves on aligning with the high-growth, entrepreneurial backed market, and this thesis aligns perfectly with Clio’s exciting market disruption in the healthier for you snacking space” said Jordan Hoppe, Director at Stonegate Capital. “We are certainly looking forward to being a collaborative partner in Clio’s already impressive growth story.”

Stonegate Capital, a division of SG Credit Partners, is a private credit investment firm with a unique approach to providing financing solutions to established lower middle market businesses with a heightened focus on emerging brands within the food and beverage, consumer products, and e-commerce spaces.  Recognizing that each company has unique and specific needs, Stonegate focuses on aligning senior credit facilities to the growth and liquidity requirements of a business.

Please visit the Company’s website for additional information:

www.cliosnacks.com

For additional details regarding Stonegate Capital’s investments, please contact us directly at:

www.sghcap.com

Jordan Hoppe: 312-971-8136 | jhoppe@sghcap.com

Evan Waggoner:  336-512-6388 | ewaggoner@sghcap.com

Dan McCallum: 312-971-9445 | dmccallum@sghcap.com

Ryan Woody: 312-971-1551 | rwoody@sghcap.com

Andrea Hedrick: 773-562-8477 | ahedrick@sghcap.com

SG Credit Profile: SaaS

The Company: A leader in cloud adoption and management solutions. 

The Financing Situation: The Company was seeking non-dilutive growth capital to execute on its substantial pipeline. 

The Solution: SG was supportive of the deal due to the Company’s recurring revenue metrics, high retention rates, positive growth tailwinds, and strength of the management team. 

To learn more, please click here to view the full press release. 

SG Credit Profile: SaaS

The Company: A leader in channel management automation for enterprises selling through channel partners.

The Financing Situation: The Company was seeking capital for product development, to expand its team, and to execute on growth opportunities in its pipeline.

The Solution: SG structured a $1.5 million non-dilutive term loan supported by the Company’s recurring revenue base. SG was able to get comfortable based on the Company’s comprehensive product suite, ARR growth, strong SaaS metrics, and experienced management team.

SG Credit Profile: Cash Flow

The Company: An entrepreneur-owned specialty delivery service catering primarily to the medical industry.

The Financing Situation: The founder of the Company needed growth capital to fund an emerging but unrelated new venture. The founder had previously signed an LOI with another lender that re-traded key deal terms during diligence. Faced with immediate time constraints, the founder needed a new debt provider that could execute quickly and provide certainty to close.

The Solution: Although the new venture on its own could not yet support a debt facility, SG was able to mitigate this by underwriting the cash flows of the Company. Given the Company’s positive growth trend, diverse customer base, and historical cash flow, SG was able to provide substantial covenant flexibility and permitted growth capital advances to fund the new venture. SG closed within three (3) weeks of signed term sheet.

SG Credit Profile: Technology (SaaS)

The Company: Provider of B2B and B2C telephony-related security services.

The Financing Situation: The Company was seeking non-dilutive growth capital to execute on sales & marketing initiatives and have the ability to close quickly on accretive acquisitions.

The Solution: SG was able to get comfortable with the transaction due to the Company’s consistent growth in MRR, strong retention metrics, profitability, and experienced management team. Within 3 weeks from signed term sheet, SG provided a $2MM growth capital facility with $1.5MM funded and an additional $500K tranche available based on continued growth.

SG Credit Profile: Technology (SaaS)

The Company: Software as a Service platform that provides AI-powered marketing analytics. The platform provides an end-to-end suite of tools that allow clients to research and measure their marketing investments and maximize ROI.

The Financing Situation: The Company’s existing bank credit facility was no longer a strategic fit and the Company was seeking additional non-dilutive capital to help execute on its growing sales pipeline.

The Solution: SG was able to get comfortable with the transaction due to the Company’s strong management team, blue chip customer base, enterprise value, and its supportive cap table. SG provided a $2MM senior secured facility with an interest-only period and modest amortization to payoff the bank and support the Company’s ARR growth with non-dilutive capital.

The Company: Digital signage SaaS platform enabling SMB & enterprise customers to easily create and manage content in real time on any number of displays, anywhere in the world. Ownership: Founders & Management. Run Rate ARR: $3mm+.

The Financing Situation: The Company had been bootstrapped with founders’ capital to date and was seeking a non-dilutive capital solution to (i) continue to grow ARR and in turn enterprise value prior to an institutional equity raise and (ii) bridge to profitability.

The Solution: SG was able to get comfortable with the Company’s earlier stage revenue due to the Company’s proven technology with enterprise clients, strong SaaS metrics, and the founders’ successful track record and continued support of the business. SG provided a $2.2mm senior secured facility with an interest-only period until the Company reaches profitability.